Which of the following is are true about Bill of Exchange I A bill of exchange requires in its incep...........

Negotiable instrument Act Others

Which of the following is/are true about Bill of Exchange?

(I) A bill of exchange requires in its inception two parties.

(II) A bill of exchange or “draft” is a written order by the drawer to the drawee to pay money to the payee.

(III) Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a pecific date.

(IV) Definition of ‘ Bill of Exchange’ is mentioned in Section 6 of the Negotiable Instrument Act.

(I) and (IV)

(I), (II) and (IV)

(II) and (III)

(III) and (IV)

All of the Above

Explanation:

(II) and (III). A bill of exchange requires in its inception three parties—the drawer, the drawee, and the payee. Definition of ‘ Bill of Exchange’ is mentioned in the Section 5 of Negotiable Instrument Act.